Asia markets fall after Japan’s export data, cabinet shake-up

October 22, 2025 (MLN): Asia markets mostly retreated on Wednesday as investors digested fresh trade figures from Japan and the appointment of the country’s new leadership team.

Japanese exports in September broke a four month losing streak, rising 4.2% year-on-year, supported by robust demand from Asian economies. However, the figure fell short of analysts’ forecasts of a 4.6% increase, according to a Reuters survey.

The political landscape in Tokyo also drew investor attention after Prime Minister Sanae Takaichi and her new cabinet were sworn in on Tuesday. Former leadership rival Shinjiro Koizumi was appointed defense minister, while Satsuki Katayama made history as Japan’s first female finance minister.

Japan’s Nikkei 225 led regional losses, falling 0.48%, while the Topix index edged 0.33% higher. Shares of SoftBank Group tumbled more than 10% early in the session before trimming losses to around 5%, following Monday’s 8.5% rally.

On Tuesday, the Nikkei briefly touched a record intraday high of 49,945.95 before pulling back after Takaichi’s confirmation as prime minister.

Elsewhere, South Korea’s markets defied the broader trend, with the Kospi up 0.3% and the Kosdaq gaining 0.1%. Shares of LG Chem surged as much as 10% after Palliser Capital reportedly urged the company to revamp its board and initiate a share buyback program.

In Australia, the S&P/ASX 200 dropped 0.87%, reversing earlier gains after a brief rally in rare earth stocks driven by news of a U.S.-Australia critical minerals agreement.

Hong Kong’s Hang Seng index slipped 0.83%, though Pop Mart, the maker of popular Labubu dolls jumped 6% following strong third-quarter earnings. On the mainland, China’s CSI 300 opened 0.69% lower.

Indian markets remained closed on Wednesday for a public holiday.

Meanwhile, on Wall Street, the Dow Jones Industrial Average hit a fresh closing record on Tuesday, buoyed by upbeat earnings from Coca-Cola and 3M.

The Dow climbed 0.47% to finish at 46,924.74, briefly crossing the 47,000 mark intraday. The S&P 500 ended flat at 6,735.35, while the Nasdaq Composite dipped 0.16% to 22,953.67.

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